1. Chapter 19 What Is Promotion?
Any form of communication
a business or organization
uses to inform, persuade,
or remind people about it’s
products and improve it’s public image.

2. There Are Four Types of Promotion:
Product Promotion
An act to convince potential customers to buy products from it instead of from the competitor
Institutional Promotion
The attempt to create a
favorable image for itself (especially
in relation to competitors).
There Are Four Types of Promotion:
Advertising, Publicity, Sales Promotion, Selling

3. Advertising Any paid form of non-personal presentation and promotion of ideas, goods, or services by an identified sponsor.
How is advertising
distinguished from other forms
of promotion?
What are the advantages to advertising?
What are disadvantages to advertising?

4. Publicity Involves placing newsworthy information about a company, product, or person in the media.
The Principle Factor of Publicity: BUILD AN IMAGE!
Image
The way a business or organization is defined in people’s minds.
It is an impression based on a
combination of factors: physical surroundings, personal experiences,
and things written or said in the media.

5. Publicity, cont. What are the advantages of publicity?
What are the disadvantages of publicity?

6. Sales Promotion The use of marketing devices such as displays, premiums, and contests to stimulate purchases.
Can either be consumer oriented or trade oriented.
Trade Promotions
Sales promotion activities designed to gain manufacturers, wholesalers, and retailers support for a product.
Consumer Sales Promotion
Activities designed to gain consumers support.
What are the advantages of sales promotions?

7. Trade Promotions (4) Slotting Allowances
Cash premium paid by the manufacturer to a retail chain for the costs involved in placing products on the shelf.
Buying Allowance
Special price discount given by manufacturers to wholesalers and retailers to encourage them to buy a product or a larger quantity.
Sales Incentives
Rewards given to employees who successfully meet or exceed their company’s sales quota for
a particular product or line of products.
Also: Trade Shows and Conventions

8. Sales Promotions Licensing
Business arrangement whereby organizations license for a fee their logo, trademark, trade characters, names and likeness, or personal endorsements.
Promotional Tie-Ins
Involve sales promotional arrangements between one or more retailers or manufacturers.

9. (Vocabulary) Visual Merchandising and Displays Premiums and Incentives
P- low-cost items given away free
to consumers as a condition of purchase.
I- higher priced products earned and
given through contests or a sweepstakes award.
4 Types of Premiums
Product Sample
Free trial size of a product that is sent through the mail, door-to-door, or retail and trade shows.
Mail-In Rebate
$10

10. Order Taking vs. Order Getting
Personal Selling Oral sales presentation to one or more potential buyers.
Order Taking vs. Order Getting
What are the advantages?
What are the disadvantages?

11. Promotional Mix
A combination of different types of promotion that will be most effective in persuading customers or other businesses to purchase and support the business’s products.
Business’s…..
…..use more than one type of promotion to achieve
their goals.
…..use promotional techniques that will compliment
each other.
…..must coordinate all types of sales promotion.